OK, not quite a promoter's dream maybe, but certainly an economic double act loaded with significance for borrowers and voters.

In Brisbane, Reserve Bank governor Ian Macfarlane faces his twice-yearly appearance before a federal parliamentary committee in Brisbane, while in Canberra, Treasurer Peter Costello will release the Department of Treasury's half-yearly budget review, known as the Mid-year Economic and Fiscal Outlook, or simply MYEFO. It's the Government's second most important economic report, after the budget itself.

The Brisbane spectacle will see Macfarlane quizzed on the Reserve's pre-Christmas interest rate double punch. But of even more interest will be any clues he gives on the future of interest rates - a political wild card in the lead-up to next year's federal election.

Meanwhile, the MYEFO extravaganza will showcase the official estimate for next year's federal budget surplus - foreshadowing the Government's pre-election treasure chest.

It might look like an embarrassing double booking, but in fact the Treasurer arranged it. He decides when to release MYEFO, and he chose today, knowing Macfarlane would be on show. Costello was asked to explain the clash last week but his answer didn't shed much light on his strategy.

"Well, I don't think this is a competition, you know, as to who has the shiniest set of figures here," he said. "We release our update on the budget before Christmas every year. As it turns out, it will be next week. I think the [Reserve] governor gives testimony twice a year, is it? As it turns out it will be next week. But I am sure that the press of Australia can handle two stories on one day."

In July the Treasurer said the level of public interest in the governor's public appearances was a good thing because they built understanding about monetary policy and confidence in the financial system.

"[They] ensure the continued transparency and accountability of the Reserve Bank's conduct of monetary policy - and therefore the credibility of policy itself," he said.

So why take away from Macfarlane's rare public outing by making him compete with MYEFO?

One theory is that Costello is trying to distract attention from any hint Macfarlane might offer that further rate hikes are in the pipeline.

If that's the game, Costello is bound to fail.

Financial market pundits are clear that Costello's MYEFO will be no match for Macfarlane in the attention stakes.

Westpac's veteran economist, Bill Evans, says categorically that Macfarlane's outing is "the most important event of the week".

Another market economist, frustrated with Costello's timing, said MYEFO "will sink without trace" up against Macfarlane.

These comments underscore how economic power has shifted from Canberra to Sydney (the RBA's headquarters), as interest rates have emerged as the key tool of macro-economic management.

It's pretty obvious home borrowers and business people will also be more interested in interest rates than the progress of the budget.

But I don't think Costello is seeking to steal Macfarlane's thunder - it is probably the reverse. The Treasurer is more likely to be trying to limit the attention on his swelling budget surplus.

After surprising all with last budget's "sandwich and milkshake" tax cuts, the Treasurer unveiled the "Costello doctrine": when Commonwealth debt is low and all the Government's priorities have been funded, anything left over should be given back to taxpayers as a tax cut.

This has been a useful political tool to counter Labor's claims that Costello is the highest taxing treasurer in Australian history, and to ward off the Government's marauding "spending ministers" who want to get their hands on extra cash for themselves.

But the doctrine has created a problem. It implies more tax cuts are in the offing, and expectations are building for some serious tax relief next year.

In September, when the 2002-03 final budget outcome revealed a bumper $7.5 billion surplus, headlines proclaimed tax cuts worth $10 a week were in store for next May's budget.

The surplus revealed today will be interpreted as a ready reckoner of what taxpayers can look forward to next budget night.

Hence the timing of MYEFO.

"The Treasurer wants to take public attention away from the thought of 'next stop: tax cuts'," one budget expert said.

"He doesn't want people to think through the game plan."

But there are some potential pitfalls in the Treasurer's MYEFO timing.

Acting shadow treasurer, Bob McMullan, says the tactics are in keeping with Costello's habit for excessive secrecy and concealment.

"The Treasurer is showing a disconcerting desire to keep information hidden," he said.

"He's starting to get a bit arrogant and think the information is his and not the public's."

Also, making the Treasury and central bank give their views on the economy on the same day will highlight any differences.

MYEFO will update the Government's official economic forecasts at the same time Macfarlane delivers the central bank's latest take on the economy.

Views on the inflation outlook may be a potential point of conflict. The Reserve is likely to stress the upside risks to inflation, but if the Treasurer's comments are any guide, Treasury doesn't agree.

And what will Treasury say about interest rates? If the MYEFO document assumes rates will remain at the current level, on the same day Macfarlane flags the possibility of further increases, it puts a question mark over the official forecast. The bureaucrats hate this prospect because it undermines their predictions.

But maybe the biggest risk is that the MYEFO-Macfarlane coincidence will highlight a looming conflict between fiscal policy and monetary policy next year.

If the economy continues to gain momentum as the world economy recovers, it is possible that election-related economic stimulation - like a healthy tax cut - might prompt the Reserve to set interest rates at a higher level than they might otherwise have been.

"It's a very uncharacteristic mistake of timing," he said. "It is a political mistake of considerable proportions which the Treasurer will long regret."

Whatever Costello's reasoning, and whatever the fallout, it is hard to see how releasing MYEFO today is in the public interest. Given the significance of both events, there is no sense in making them compete, especially if the only reason is to muddy the political waters.